JLR Sales Suffer Steep Q3 Decline
Jaguar Land Rover (JLR) announced a dramatic fall in wholesale and retail sales for the third quarter of FY26, with volumes contracting sharply due to significant operational disruptions. Wholesale volumes plunged 43.3% to 59,200 units, while retail sales saw a 25.1% decrease to 79,600 units for the period ending December 31, 2025. The Tata-owned luxury automaker attributed these declines to a severe cyber incident that halted production and subsequent delays in vehicle distribution.
Production and Distribution Woes
The cyber attack, which occurred earlier in the quarter, severely impacted production. Output only began returning to normal levels around mid-November. Following the restart, the time needed to distribute vehicles globally further constrained deliveries throughout the reporting period. JLR stated that these factors directly impacted volumes, exacerbated by the planned wind-down of older Jaguar models in preparation for the brand's transition to a fully electric lineup. Incremental US tariffs on exports also played a role in impacting sales to the American market.
Regional Performance Mixed
Major international markets experienced substantial drops in wholesale volumes. North America led the decline with a 64.4% decrease, followed by Europe at 47.6% and China at 46.0%. The UK market showed relative resilience, registering a modest 0.9% dip, while the Middle East and North Africa region saw volumes fall by 8.5%. Despite the overall contraction, JLR's premium SUV portfolio, including Range Rover, Range Rover Sport, and Defender, continued to be a strong performer, accounting for 74.3% of total wholesale volumes, an increase from the previous year.